POWER PLAY

Caterpillar’s 26Q2 earnings were superb. The AI boom continues to drive demand for its engines and generators, while construction activity boosts demand for dump trucks/bulldozers/excavators. Quarterly revenue hit an all-time high, it raised full-year sales guidance, and its backlog is up 92% Y-o-Y. Cat plans to double production of turbine engines by 2030 and invest to make more generators. This is proof AI demand for power and energy is insatiable.